Question

11,490 340 6.530 0 points] a) Identify which account(s) have been erroneously included in the trial balance below by putting an X next to the line in error Alarco Inc Post-Closing Trial Balance July 31, 2014 Debit Credit Accounts receivable Accumulated depreciation, equipment Accumulated depreciation, furniture Cash Consulting revenue eamed Dividends Equipment Furniture Interest expense Mortgage payable Prepaid interest Rent earned Retained earnings Share capital Short-term notes payable 5,830 Supplies expense Uneamed consulting revenue Uneamed rent Totals 47.610 47.610 3.880 9.050 6,550 3.480 8.260 2,330 5,590 14,170 5,360 1.130 1,620 b) What entry is required to fix the error Enter the date in the format ddim General Journal Page GJE Date Account Explanation F Debit Credit ( 15 Jan). To correct closing entry error c) Calculate the correct post closing retained earnings balance on July 31, 2014 Retained earnings balance

Answer 1

A)Post closing trial balance is prepared after all closing entries are made that is revenue accounts ,expense account ,net income and Dividend account is closed.

Account title	Account that will not appear in post closing trial balance
consulting revenue earned	X
Dividend	X
Interest expense	X
Rent earned	X
Supplies expense	X

b)

Date	Account title	Debit	credit
31 Jul	consulting revenue earned	4980
	Rent earned	5590
	Income summary		10570
	[To close revenue]
31 July	Income summary	7780
	Interest expense		3480
	Supplies expense		4300
	[To close expense]
31Jul	Income summary	2790
	Retained earning		2790
	[To close net income 10570-7780]
31 Jul	Retained earning	3880
	Dividend		3880

C)Retained earning as on 31 Jul = Balance as per post closing trial balance + Adj 3 -Adj 4

                         = 14170 + 2790 -3880

                        = 13080